RBS chief waives bonus January 2012
Posted date: 30 January 2012
Bonuses are “still out of control” according to the Trades Union Congress (TUC), despite Stephen Hester relinquishing his share bonus worth £963,000.
The Chief Executive of the Royal Bank of Scotland (RBS), who earns an annual salary of £1.2 million, has been caught in a political battle over executive remuneration.
The announcement came hours after the Labour party said it would prompt a Commons vote over the payout. Reports have revealed that Hester is concerned that he is becoming a “pariah”.
The TUC has welcomed the move but has warned the Government that its up coming plans to curb executive remuneration do not go far enough.
Although RBS is 83 per cent owned by the taxpayer, it is run by an independent board of directors. As such the Government had no power to “block” any payments.
Brendan Barber, TUC General Secretary, said: “The Prime Minister has said the UK does not need worker representatives on remuneration committees because shareholders are more than capable of keeping top pay and bonuses in check. Today’s decision proves this is not the case. Pay and bonuses at the top are still out of control.”
The shares awarded to Hester were deferred and were subject to holding conditions until 2014. He has given up his reward on a voluntarily basis.
In a similar move Chairman of RBS, Sir Philip Hampton, also turned down his share bonus worth £1.4 million which he was awarded in 2009 when he joined the institution.
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- January 2012
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